SISB…What a Cozy School It Is!!

SISB: a cozy place for students and a cozy stock for investors.

SISB Public Company Limited or SISB is not only a cozy school for kids but is also the stock that investors should invest in as well. That is because it is a growth stock and its growth in historical trading data can confirm that.

 

In 2017, the company made 17 million baht of gross profit while the total revenue was at 746 million baht. Gross profit increased to 103 miIlion baht in 2018, while total revenue also increased to 947 million baht.

In the third quarter of this year, gross profit was at 60 million baht, 32 million baht higher or increasing 116.8%, compared to 27 million baht in the year earlier. Total revenue of the third quarter was at 289 million baht, increased 52 million baht or 22.02% when compared to 237 million baht in the same period of last year.

 

More importantly, the company had just reached an all-time high last Friday to trade at ฿9.30/share, increased ฿0.30/share or 3.33%. Mr. Yew Hock Koh, Chief Executive Officer of SISB, also said that the company is expected to record an increase of 15-20% in revenue in 2020 as well as an increase of new students.

 

The main drivers of these outstanding performances were revenue from education management which increased 21.5% to 217 million baht, the number of students increased by 30 persons to 2,405, yearly tuition fee was at 440,000 baht per person, 5% higher, from 420,000 baht per person in the year earlier.       

Moreover, application and entry fees increased 20.04% to 14.36 million baht, which grew accordingly to new student increase.

Financial costs also decreased 93.09% to 0.66 million baht, from 9.63 million baht in Q3/2018, due to no interest repayment. At the same time, the profit  from Singapore international school in Chiangmai was booked at 1.63 million baht.

This resulted in the first nine month of this year gross profit to increase 116.5% to 154 million baht, from 71 million baht in the year earlier. While, total revenue of the same period increased 20.3% to 830 million baht, from 690 million baht in the year earlier.

Investors were really not disappointed in this stock!

 

The outstanding point of SISB is its recurring income which came from two parts. The first part  is one student has to pay tuition fee continuously for at least 6 years and there is a 5% yearly tuition fee increase policy. The current tuition fee is about 400,000-500,000 baht per semester. SISB aims to get new students to 200-250 persons per year. The second part is an entry fee which every student has to pay which the school will be gradually booked in six years as well.

 

More importantly, SISB is a school stock, giving dividend yield not lower than 40% of gross profit with no tax, which many investors may not know about this rule.

SISB is set to launch The International Baccalaureate Diploma  Programme (IBDP) next year, which will certainly help increase its revenue.

This is really one of the good hidden stocks in the market.

 

However, there is a pre-emptive warning that SISB is suited to be a long term investment rather than short term for speculation stock. In just almost a year, since SISB was listed in the Stock Exchange of Thailand on November 29, 2018, SISB’s price rallied 69%. Which means investors who hold the shares at IPO price (5.20 Blbaht) have already had a handful of profit by now. 

 

 

 

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